10 November 2016

Condition
Complicated procedure in
obtaining investment
licenses

Tighter competition

Economic
Policy
Package

Macro
Economy
Improvement

Increase in labor cost

Toll Road
Land
Acquisition
Bonded
Logistic
Centre

Benefits
Enhance easiness of doing
business in Indonesia

Simplification in obtaining
investment license
Increase business certainty
Operating efficiency

Jombang - Mojokerto

East Kalimantan

Retail Business

Manufacturing

Large Population
(255 mio people)

Domestic &
Export Production
Base

Potential sector:
Automotive,
Consumer Goods
and Food &
Beverage

Establishment of
Astra Life to cater
life insurance
needs

Launch of LCGC
7 seater (Toyota
Calya and
Daihatsu Sigra)
Export to Asian
and Middle-East
Countries

Agribusiness & Mining

Rich natural resources
(oil, gas and minerals)

Infrastructure

Diverse forest and

marine resources

Private sector
involvement in
Governments
infrastructure
project

Potential renewable
energy resources
(geothermal, water,
wind)

Potential sector:
Toll road, Port,
Airport and
Power Plant

Gold mining (Sumbawa

Jutaraya)

Toll road (226.8

km)

Going downstream :
CPO refinery (Tanjung
Sarana Lestari)

Development
of Coal-fired
Tanjung Jati
power plant 2 x
1,000 MW

Property

Digitalization

Indonesia as a
developing
country

Information
technology
rapid growth

High needs of
commercial
building and
housing

E-Business and
Digital
services

Commercial
office building
(Menara
Astra)

OtoCare

Residential
Property
(Anandamaya
apartment)

Axiqoe

Residential
development
in East Jakarta
with
Modernland

Anavigo
OfisKita

4W Wholesale Market (K units) and Astra Market Share

Total 4W Market ('000 units)
2,000
1,900
1,800
1,700
1,600
1,500
1,400
1,300
1,200
1,100
1,000
900
800
700
600
500
400
300
200
100
-

51%

Astra m/s

Total 2W Market
60%

53%

50%

2W Wholesale Market and Honda Market Share

14,000

53%

Honda m/s
73%

69%

73%
70%

64%
12,000

60%
10,000
50%

8,000

40%

30%

6,000

1,208

1,100

1,080

1,013

4,000

30%

7,867

6,480

6,000

6,150

2,000
0%

2014

2015

2016F

CPO Production - K tons

10%

0%

2014

2017F

2015

2016F

CPO Sales - K tons

HE Market ('K units)

2017F

PAMA Mining Contracting

Heavy Equipment Market and

Komatsu Market Share

AAL CPO Production & Sales

20%

Komatsu Share

Coal Production (mio tons)*

OB Removal (mio bcm)

2, 000

20,000

50%
180

1, 800

806

18,000
1, 600

16,000

40%

36%

1, 400

14,000

34%

35%

900

767

690

730

160
40%

800
700

140

600
120
30%

1, 200

12,000

10,000
800

1,744

1,737

1,700

1,550

600

1,375

1,021

1,100

60

6,000

4,000

1,042

8,867
5,912

200

6,400

7,200

2014

2015

2016F

2017F

2015

2016F

2017F

114

109

112

300
200

20

100

0%

2014

119

10%40

2,000

400

20%80

8,000

400

500

100

1, 000

2014

2015

2016F

2017F

 Synchronization of policy implementation in central and regional

government

Public sector for private

Prioritize for domestic players
Export incentives and protection
Political and social stability

Summary of Indonesia Economic Stimulus Package

I.

Improving national industry competitiveness through deregulation, enhance law enforcement and business
certainty

II.

Speed up investment licensing for industrial estates, interest rate tax cuts for exporters, and relaxation import
taxes on capital goods in industrial estates and aviation

III.

Energy prices cut

IV.

Social security and peoples welfare (fixed formula to determine increases in labor wages, soft micro loans for
export-oriented of Small Medium Enterprise / SME)

V.

Tax reduction for asset revaluation and elimination of double taxation on Real Estate Investment Trust/REIT)

VI.

Specific Economic Zone (SEZ) in 8 regions

VII.

Boost national labor-intensive industry: waive income tax for workers in the nations labor-intensive industries; free
leasehold certificates for street vendors

VIII. One map policy for land utilization, incentives for the development of oil refineries by the private sector and zero

percent import duties for 21 categories of airplane spare parts

IX.

Building infrastructure for electricity and logistics

X.

Boosting FDI (Foreign Direct Investment) through the draft of revised negative investment list; as well as the
protection of SMEs

XI.

Export oriented credit, tax cut for Real Estate Investment Trust (REIT), dwelling time reduction and roadmap for

the pharmaceutical industry

XII.

Enhance the ease of doing business in Indonesia by cutting procedures, permits and costs

XIII.

provide affordable housing for low-income people with simplified procedures